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Road freight market update and Metro review

Dec 10, 2024 | , , , , , , , , , , , ,

The road freight market in the UK and Europe is grappling with structural cost challenges, evolving regulations, and capacity constraints, while Metro’s road freight division continues to expand, delivering innovative solutions and outperforming market trends.

In the UK and Europe, road freight rates have remained under pressure due to structural cost drivers. The market stabilised in Q3 as softer short-term demand provided some relief. However, higher costs associated with fuel, tyres, insurance, and maintenance are sustaining elevated freight prices.

New truck registrations in Europe have fallen by 7.5% year-to-date, limiting capacity growth. As a result, many carriers are extending vehicle lifespans, with the average truck age now at 14.2 years. This decline in fleet renewal, combined with new EU regulations banning non-compliant rubber imports by year-end, has further tightened capacity and increased costs.

The TEG Road Transport Index showed a slight month-on-month decline but remains 4.4 points higher than the same period last year. Similarly, the haulage price index rose marginally in November but has seen a 10.4-point increase year-on-year.

Consumer demand around Black Friday offered a brief boost to the sector, with UK retail destinations seeing an 11% rise in footfall compared to the previous Friday. However, this temporary spike is unlikely to offset the ongoing challenges posed by inflationary pressures and volatile diesel prices, which continue to drive rates higher.

Metro’s road freight performance
Metro has made significant strides in its road freight division, upgrading its groupage services to France and Germany to deliver greater speed, efficiency, and customer satisfaction. These enhanced services ensure regular, reliable departures and seamless distribution throughout key regions.

France: Metro’s groupage services remain a standout feature, offering efficient, dependable shipping across the country.

Germany: Metro has expanded its presence, particularly in the Ruhr area, a vital industrial hub. Frequent departures ensure swift distribution through a trusted partner network.

Metro’s commitment to excellence extends beyond speed and cost. By prioritising communication, reliability, and trust, the company has built a reputation for hassle-free European shipping. Features such as GPS-tracked vehicles, dedicated routes, and door-to-door solutions ensure customers benefit from transparency and timely updates throughout the process.

Metro’s growth and outlook for 2025
The road freight division has seen exceptional growth, outpacing the market. While many competitors have experienced flat volumes, Metro has achieved over 50% year-on-year expansion, with a 60% increase in team size in the last year alone. The division is projected to grow by a further third in 2025, targeting an additional 40% volume increase.

Key priorities for 2025 include:
New groupage services: Recently launched lanes to the Netherlands, Poland, and Iberia are expected to play a significant role in Metro’s growth strategy.

French and German services: Continued development of these high-demand routes will remain a focus, with plans to enhance service frequency and efficiency.

Pan-European LTL and FTL services: The bulk of Metro’s volume is expected to come from its less-than-truckload (LTL) and full-truckload (FTL) offerings, supporting both inbound and outbound trade across Europe.

The road freight market faces continued pressure from rising costs and capacity constraints, but Metro’s proactive approach and investment in innovative solutions position it as a leader in the sector. By prioritising customer satisfaction and expanding its services, Metro is set to maintain its strong growth trajectory in 2025, even as the broader market navigates challenging conditions.

To explore the potential and benefits of our road freight services EMAIL Richard Gibbs to begin a conversation.

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Metro enters UK publishing industry with seasoned expertise

Nov 25, 2024 | ,

Metro has announced its entry into the UK publishing industry, a sector that has experienced robust growth and significant challenges in recent years.

Supported by senior publishing logistics executive, Declan Fallon, with over 40 years of experience, Metro aims to bring its advanced logistics solutions to an industry valued at over £7 billion in 2023.

A thriving industry with unique needs
The UK publishing industry is a cornerstone of the economy, recording a record revenue of £7.1 billion in 2023. This marked a 3% increase from the previous year, driven by growth in consumer and academic publishing. Consumer publishing revenue reached £2.4 billion, while academic publishing grew to £3.6 billion, fuelled by a rise in export market revenue.

However, the sector faces challenges, including Brexit-induced costs, inflationary pressures, and supply chain complexities. These issues have highlighted the need for resilient logistics solutions tailored to the publishing sector’s unique demands.

Metro’s specialised publishing solutions
Metro is uniquely positioned to address these challenges with its comprehensive suite of logistics services and Declan’s decades of experience in handling books and print.

– End-to-end supply chain management: From import and export management to last-mile delivery, Metro ensures seamless operations.

– Customs clearance and compliance: Expertise in navigating complex regulations for smooth international trade.

– Advanced warehousing solutions: Integrated Warehouse Management Systems (WMS) provide real-time tracking and efficient order fulfilment.

– Sustainability initiatives: Carbon-neutral shipping options and sustainable packaging align with the publishing industry’s growing focus on environmental responsibility.

Leveraging technology for resilience
Metro’s cutting-edge technology platforms, such as the MVT ECO system, offer data-driven insights into supply chain performance. Features include global inventory visibility, predictive analytics, and eCommerce integration, enabling publishers to adapt to market demands quickly and efficiently. These tools are critical for meeting time-sensitive requirements like seasonal releases and peak periods.

Seasoned expertise driving the strategy
At the core of Metro’s publishing strategy is the expertise of its senior publishing logistics executive, Declan Fallon. With over four decades of experience working with some of the biggest names in publishing, this leadership ensures a deep understanding of the sector’s complexities and priorities. This combination of expertise and innovative solutions positions Metro as a trusted partner for UK publishers navigating an increasingly dynamic landscape.

To learn how Metro can add value to your print and publishing supply chain operation EMAIL Declan Fallon, Head of Publishing & Print Logistics.

VISIT our Publishing and Print web page.

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Peter Orange takes helm of Metro’s global network development

Nov 21, 2024 | ,

Metro has strengthened its commitment to building robust partnerships worldwide with the appointment of Peter Orange as head of global network development. This strategic move underlines Metro’s focus on global growth, with a resilient, agile network that can adapt to the shifting demands of the logistics landscape.

With over 30 years of experience spanning key regions such as Australia, Singapore, the UAE, and the UK, Peter brings a wealth of expertise and a global outlook to his new role. His mission is to enhance Metro’s engagement with existing partners while identifying and securing new alliances that align with the company’s strategic objectives.

Particular focus will be placed on partnerships in specialised verticals such as automotive and high-tech, where reliability, compliance, and innovation are critical. Peter’s leadership will ensure that Metro’s partner relationships are optimised to address market dynamics, with regular evaluations and collaborative reviews to align strategies and identify growth opportunities across air, ocean, and multimodal transport.

Expanding network capabilities
To build on this foundation, Metro plans to expand Peter’s team by appointing dedicated route development managers for key regions. These include Asia Pacific and EMEA, complementing the existing emphasis on North America. The expanded team will work closely with Metro’s partners, driving sales, sharing market intelligence, and setting clear targets to support data-driven growth.

Metro’s strategy focuses on creating a network that combines global reach with local expertise. By strengthening ties with partners and investing in the right people, the company aims to ensure that its customers benefit from agile and dependable supply chain solutions, even in challenging market conditions.

Adapting to a dynamic landscape
Peter’s leadership will play a pivotal role in ensuring Metro’s global network can withstand disruptions and respond effectively to shifting demands. His efforts to foster collaboration and prioritise innovation will not only enhance Metro’s service offering but also position its customers for success in an ever-evolving logistics environment.

With a focus on value-driven partnerships and operational resilience, Metro’s global network development strategy is set to reinforce its market leadership. Under Peter’s guidance, the company is poised to deliver solutions that meet the complex needs of today’s supply chains, ensuring long-term value for its customers.

To explore how Metro’s partnerships can support your business needs, please EMAIL Peter Orange for more information.

Customs declaration

November 2024; Customs and compliance update

Nov 13, 2024 | , , , , , , , ,

Our customs consultancy team provide insights on the latest changes, making it easier for you to stay on top of your planning and development needs.

To help us better support your compliance and efficiency goals, including duty/tax reclaims, we encourage you to click the button below to complete our short, five question survey. By responding, you’ll receive tailored insights and support to address any gaps or opportunities within your customs and trade processes.

Carbon Border Adjustment Mechanism (CBAM)
As attention focused on the recent UK government budget, many missed the announcement about the UK’s own carbon border adjustment mechanism (CBAM), coming into effect on 1st January 2027. This CBAM will place a carbon price on high-risk goods imported to the UK from sectors including aluminium, cement, fertiliser, hydrogen, iron, and steel. This measure aims to prevent “carbon leakage” by ensuring the UK’s decarbonisation efforts truly reduce global emissions rather than simply shifting them abroad.

Key points:
• Goods from the glass and ceramics sectors are excluded from CBAM requirements starting in 2027.
• Only businesses importing over £50,000 of CBAM goods annually will need to comply.
• Lessons from the EU’s recent CBAM rollout, which faced data challenges, may offer valuable insights as the UK implements its own system.

Safety & Security Great Britain (SSGB)
The SSGB requires an Entry Summary Declaration (ENS) for all goods imported to Great Britain from the EU, effective from 31st January 2025. Responsibility for filing lies with the carrier or haulier, but as the UK importer, you hold the key data.

Here’s what you need to know:
• For accompanied freight, the origin freight forwarder or haulier is responsible for the ENS submission.
• For unaccompanied freight, the ferry line is responsible.
• Some of the required data can be found on your import customs entry, but certain details may depend on direct or indirect liability, particularly if ENS filing is requested by another party.
• A GB EORI number is essential for those needing access to the system.
• HMRC requires accurate and updated departure details before sailings, although some linking issues with GVMS remain unresolved.

Final guidance is pending, but obtaining EORI information from your suppliers will support this new requirement.

Windsor Framework
The Windsor Framework, replacing the Northern Ireland Protocol, has seen its implementation date pushed from 30th September 2024 to 31st March 2025.

This framework introduces Red and Green lanes for goods traffic and replaces the TSS (Trader Support Service) with the UKIMS (UK Internal Market Scheme). It will simplify trade, particularly for agrifoods moving into Northern Ireland, with the Northern Ireland Retail Movement Scheme (NIRMS) reducing administrative burdens for certain goods.

import control system 2 (ICS2)
As ICS2 progresses for EU surface cargo, European hauliers have voiced concerns about the challenge of gathering essential data. Metro can assist exporters by preparing data in advance from the export entry, keeping hauliers on the move.

Key details:
• Much of the required information is found on the customs entry.
• Emphasis has shifted to 6-digit commodity codes, and the EU consignee’s EORI number is now required.

Simplifying the complex
While the list of complex abbreviations and requirements continues to grow, don’t worry because our team can break down the jargon and provide clear, actionable guidance to ensure smooth customs compliance.

Client survey: Insight into your compliance needs
Please take a few moments to complete our survey. Your responses will help us understand your needs and provide solutions that enhance your compliance and streamline your processes. Thank you for your feedback!

Metro are at the forefront of customs brokerage solutions, with our automated CuDoS declaration platform and dedicated team of customs experts, reacting swiftly to any changes in the UK and EU’s trading regimes.

To learn more about compliance, CBAM, SSGB, The Windsor Framework or ICS2 – OR to see how we can simplify and automate customs declarations – please EMAIL Andy Fitchett, Brokerage Manager.

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